There’s basically no important economic data out today, causing mortgage rates to stay flat. That trend could definitely continue for a couple more days as we make our way toward the inflation reports at the latter end of the week. Read on to get all the details.
Market Outlook 8.7.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates move sideways
With no significant economic reports out this morning, there’s been very little market action in the bond market, causing mortgage rates to move sideways.
Click here to get today’s latest mortgage rates (Aug. 8, 2017).
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is flat at 2.26%. We saw the slightest of dips in the 10-year yield on Monday after we got some dovish remarks from Fed officials. St. Louis Fed President James Bullard made his position very clear made when he said that:
“Recent inflation data have surprised to the downside and call into question the idea that U.S. inflation is reliably returning toward target… The current level of the policy is likely to remain appropriate over the near term.”
It’s a case of stating the obvious, but that doesn’t always happen with Fed officials. For the greater part of 2017, we’ve been told from the Fed that inflation is bound to pick up, and that a gradual rate hike path will still be appropriate.
Now, the data has become hard to ignore and Fed officials are left with no other position than to acknowledge that a rate hike might be further than once expected.
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Checking in with the CME Group’s Fed Funds futures, we can see that not much has changed. Financial market participants were already highly skeptical that a rate hike will happen in the near-term, so December remained basically unchanged at about a 50% chance of a quarter point increase.
What does this mean for me?
Great time to lock a rate
Mortgage rates are at some of the lowest levels they’ve been at all year. That makes right now a great time for borrowers to lock in a rate on a purchase or refinance. There is the possibility that rates will rise later in the week when we get some important inflation data, so acting now could minimize that risk.
To get the most accurate idea of what kind of rate we could offer, you should fill out our short form and get a personalized rate quote. Or, if you’d rather talk to someone, you can always call one of our experienced mortgage specialists.
They can walk you through the same process, clarifying any questions you may have, and let you know what your custom rate quote is.
Today’s economic data:
JOLTS
Job openings for June came in at 6.163 M. That’s up slightly from the prior revised reading of 5.702 M.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- JOLTS
Wednesday:
- Productivity and Costs
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- PPI-FD
- Fedspeak
Friday:
- Consumer Price Index
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2vLFqvL
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